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Updated about 1 year ago on . Most recent reply

User Stats

3
Posts
1
Votes
Mike Gagnon
  • Contractor
  • Edwardsville IL
1
Votes |
3
Posts

Fairly new and temporary shift

Mike Gagnon
  • Contractor
  • Edwardsville IL
Posted

I’ve had a pretty good 2023. I’m closing on my 5th property this year within the next few weeks. This will give me 5 properties that cash flow anywhere between $150-$475 a month. 
I used all different types of financing to get me here from using my heloc, brrrr-ed one, conventional and DSCR for other 2.
my question is leverage vs risk. I’m sitting at 80% loan to value on all 5. I want to pay back off my heloc and get that leverage off my primary. The next step in my thought is to aggressively pay off the lowest loan before getting the next property with my W2 and extra cash flow from properties. After that’s paid off go for the 6th. Basically never having more than 5 properties with mortgages. 
my goal is 15 free and clear sfh. Guess I’m worried this strategy will slow down my duration but I’d sleep better. 
anyone else do this, how quickly does this process speed up after 1st house is paid off in full. It will take a few years to get the first one paid. 

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